2021 Universal Registration Document

COMMENTS ON THE YEAR

Operations and consolidated results

6.9 million euros of pensions favorable adjustments; ● -0.8 million euros of acquisition costs related to Inkbox ● announced in January 2022.

3.0 million euros from Pimaco divestiture gain in Q1 2021; ● -4.2 million euros of restructuring costs related to BIC’s ● transformation plan; -0.4 million euros of earn-out adjustment following ● Rocketbook acquisition in 2020;

KEY COMPONENTS OF THE CHANGE IN ADJUSTED EBIT MARGIN

FY 2020 vs. FY 2021

Q4 2020 vs. Q4 2021

(in % points)

Change in cost of production (a) •

(2.1)

+0.1

Brand Support •

(1.5)

(0.3)

OPEX and other expenses (a) •

(2.2)

+1.4

Total change in Adjusted EBIT margin

(5.8)

+1.2

For Gross Profit this excludes under-absorption of fixed costs due to the pandemic; (a) For OPEX and other expenses this excludes restructuring costs, Cello impairment, Pensions adjustment in the U.S.; and non-recurring items mostly commercial force underactivity. Other expenses include notably freight, distribution and R&D.

NON-RECURRING ITEMS

FY 2021

FY 2020

(in million euros)

EBIT

156.8

452.0

As % of Net Sales

9.6%

24.7%

Restructuring costs (Transformation plan), Ecuador factory closure in Q2 2020 and LAM commercial operations restructuring in Q3 2020

+27.2

+4.2

Cello impairment

+41.7

-

Some Expenses related to the Covid-19 pandemic - primarily absorption of fixed costs

+45.4

-

Pensions adjustment favorable in the U.S. in 2020 and favorable in France, UK and unfavorable in Greece in 2021

(44.1)

(6.9)

-

(167.7)

Clichy Headquarters sales capital gain

Pimaco divestiture capital gain

-

(3.0)

Acquisition costs

+2.1

+1.2

Adjusted EBIT

229.1

279.8

As % of Net Sales

14.1%

15.3%

NET INCOME AND EPS

FY 2021

FY 2020

(in million euros)

EBIT

156.8

452.0

Finance revenue/costs

(1.4)

(4.2)

Income before Tax

155.3

447.8

Net Income Group share

93.7

314.2

159.4

191.7

Adjusted Net Income Group Share (a)

Adjusted EPS Group Share (in euros)

3.54

4.29

EPS Group Share (in euros)

2.08

7.02

Excluding non-recurring items & Argentina hyperinflationary accounting for 2020. (a)

FY 2021 effective tax rate was 29.8% vs. 39.7% in 2020. FY 2020 effective tax rate excluding Cello impairment was 31.2%.

FY 2021 finance revenue decrease was mainly due to 2020’s strong favorable impact of the fair value adjustments to financial assets denominated in U.S. Dollar against the Brazilian Real.

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• BIC GROUP - 2021 UNIVERSAL REGISTRATION DOCUMENT •